• The Bank of England (BoE) and UK Treasury are set to back the development of a state-owned central bank digital currency (CBDC), popularly known as “Britcoin” or “digital pound.”
• After 21 months of research and consultations, it would appear both parties have come to a decision regarding the introduction of the “digital pound.”
• The Bank of England and the UK Treasury are expected to officially announce their stance next week, rolling out a roadmap that will lead to the successful introduction of the “digital pound” by 2030.
What is Britcoin?
The Bank of England (BoE) and UK Treasury are set to back the development of the British central bank digital currency (CBDC), popularly known as “Britcoin” or “digital pound.” This CBDC is a digital token issued and distributed by a nation’s central bank. It has been discussed since April 2021 when the UK Treasury launched a joint task force with BoE to evaluate its feasibility for British businesses and households.
Why do we need Britcoin?
Bank of England Governor Andrew Bailey and Chancellor of the Exchequer Jeremy Hunt are expected to back its introduction due to an expected decrease in cash use as society evolves into a cashless, digital economy. In consultation report presented by anonymous sources, they stated that “it is likely a digital pound will be needed in the future”.
When will we get Britcoin?
After 21 months of research and discussions, Bank of England Governor Andrew Bailey and Chancellor Jeremy Hunt are expected to make their official announcement next week, rolling out a roadmap leading to successful introduction by 2030.
Benefits & Risks
The potential benefits brought about include increased efficiency compared to paper money or traditional banking methods due ease in transferring funds quickly between users with low transaction costs. However, there could also be risks associated with CBDCs such as financial stability concerns from increased access leading to market manipulation or new avenues for money laundering activities.
Though discussions for this initiative began in April 2021, both financial authorities have finally come together on their decision – making official announcement next week with roadmap leading up till year 2030 when this “Digital Pound” will be successfully introduced into UK economy. Both potential benefits & risks need to be taken into consideration before its actual implementation & usage can begin across Britain.